Information Systems & Project Management: Michelangelo Pizza's - Case Study Example

 PORTERS FIVE FORCES ANALYSIS Michelangelo Pizza can gain a competitive advantage by using an information system to run their business. How the information system will help gain competitive advantage is shown using the Porter’s Five Forces Model. Supplier Power The supplier power assesses how easy it is for suppliers to drive up prices. If there are a few suppliers the suppliers are more powerful than the business itself. Information system can help Michelangelo Pizza by managing the suppliers efficiently. It is extremely difficult to manage hundreds of suppliers using traditional paper based models but with information systems Michelangelo Pizza can now deal with more suppliers, hence will be able to decrease the supplier power. The more suppliers a firm deals with the more bargain power it has to drive prices down and incur cost savings. Consequently, by the use of the information system the firm can give out orders automatically to suppliers and ensure that they never run out of raw materials as well as have minimum inventory on hand. This will also help in saving the storage costs. Hence, the company will gain competitive advantage as compared to other pizza manufacturers who still rely on traditional models for their business. Buyer Power The supplier power assesses how easy it is for the buyers to drive prices down. If there are a few buyers then they will control the prices. But if there are numerous buyers each having little or no influence on the prices, the producer may charge whatever he feels like. Information system can help reduce the buyer influence on prices by giving the buyers exactly what they want. This can be done by analyzing the needs of different customers and then fulfilling those needs by introducing a new product or a variant of the existing product. The firm can also please its customers by doing small gestures such as wishing people on their birthdays and anniversaries. It is fairly easy to implement using an information system which has customer preferences, their contact and personal details. The system can be programmed to automatically send an email to customers on their birthday or anniversary. This will ensure differentiation of the product and customers will find it hard to switch to other brands. Competitive Rivalry and Threat of Substitutes  By using information systems Michelangelo Pizza can obtain a significantly stronger position as compared to its competitors. The system will allow the company to establish good relationships with its customers as well as suppliers. Using information systems the firm can target specific people with specific products, it can maintain good relationships with the customers easily by corresponding online, it can offer them online ordering and it can improve the customer feedback process. This results in customer loyalty. On the other hand, information systems can also be used to improve relations with the suppliers. If suppliers are managed through information systems, each transaction is account for and can be searched easily. Orders can be given online thus eliminating the hassle of taking orders manually. Billing and credit terms are defined in the system and therefore settlement of bills is easier as no reminders are required from the suppliers, the system automatically prompts for settlement before the due date. Consequently, the maintenance of accounts and billing information is made easier. Therefore, by using information systems Michelangelo Pizza can create a distinct, differentiated view of the firm in the minds of the consumers thus reducing the threat of substitutes. Since the product is a food item and it can only be differentiated on the basis of the service and the taste. The service can be made efficient using information systems but the taste cannot be manipulated the only thing that is possible is to analyze the consumers need for a variant and then produce it. Barriers to Entry There are low barriers of entry into the market. But if Michelangelo Pizza ensures that their customers remain loyal to their brand and their suppliers do not distribute for other new entrants then the firm will be able to maintain its advantage over its competition. DATA FLOW DIAGRAM (DFD ) SYSTEM DEVELOPMENT METHODOLOGY For the information system in question, it will be useful if the manager follows the spiral model for the development of the information system. It is because the spiral model takes into account that the development projects work best when they are both incremental and iterative. Therefore, using the spiral model a software development team is able to start the project on a low scale and then build upon the product by repeated increments. Each increment is based on the analyzing requirements, designing the system, building the project (in stages) and testing. The spiral model is also useful in this scenario because the company is getting an information system for the first time and will not be able to convey all their needs in the initial requirements gathering phase. When the spiral model is used for system development the clients are presented with an initial prototype that presents a scaled down version of the system that needs to be developed. It helps the clients to understand how the software system will look like and what features it will have. An integral feature of the spiral model is risk management and it becomes an important factor for the successful building of the software system. Managing the risks in the information system development is essential to control the timely and efficient completion of the project. Risks associated with such projects include, timely completion of the software, low staff turnover, operational risks, technical and functional risks, performance risks etc. If the decent risk mitigation plans are formulated and if most of the risks are averted the successful completion of the software program becomes possible. STAGES IN PROJECT MANAGEMENT The following product development stages will be required if the company wants to develop the information system. Initiation The initiation stage deals with the determination of the scope of the project. In this stage the project team analyzes the requirements and needs of the business. Then a review of the operations of the firm is done in collaboration with the people in the organization. Later, the conceptual design of the system is made; the financial analysis of the system is performed, the stakeholders are identified and finally the schedule is made. This process involves the project manager and the project team as well as the employees of the organization where the software is being implemented. Senior people in the project management team are required for the requirements gathering, financial analysis and identification of stakeholders’ phases of the development. While from the client’s side people each department should be represented so that its functions are portrayed efficiently and effectively. System Design After the initiation stage, the system is designed. In this stage the prototype of the final product that is to be built is shown to the customers. The design stage comprises of activities that lead to the actual design of the software system. Therefore, the result of the design stage produces a design that fits the requirements of the business as well as the end users. It also ensures that all the functions that are required in the software are present, quality standards are maintained and that the system can be produced within the stipulated budget. The prototype is developed by the coding team and the testing team validates the prototype, which is later shown to the clients for approval. System Development The system development phase consists of the processes used to complete the work defined in the project management plan. The coding is done in this phase and all the intended functionality is built into the system. Coordinating people and resources and performing the activities based on the project management plan are the key features in this stage. The output is in the form of deliverables and the people involved in this phase apart from the project manager are the software developers, testers and quality assurance. Once, a system or a part of it is developed it needs to be shown to the client for approval and identification of mistakes. Monitoring and controlling The monitoring phase consists of processes that are performed to observe the progress of the project so that potential problems can be identified in a timely manner and corrective measures can be taken if necessary. The advantage of this phase is that the project is tracked at all times and hence any problems or delays are found early and can therefore be dealt with appropriately. Hence, by monitoring the progress efficiently a project manager ensures that the project finishes on time. The key player in this phase is the project manager who is responsible for tracking and controlling of the project. Closing The closing phase includes the formal acceptance of the project. The activities in this phase comprise of signing the project closure documents and the acceptance documents. This phase marks the completion of the project. The people involved in this phase are the project manager, senior staff from the client’s side and the contract signing authority on behalf of the client. Any agreements of after sales service etc are also formally signed and the project is closed. Bibliography DFD . (n.d.). Retrieved December 02, 2009, from www.getahead-direct.com: http://www.getahead-direct.com/gwbadfd.htm Read More